By Ryan Hanrahan
Bloomberg’s Erin Ailworth reported that “US soybean buys by China have picked up following a summit between Trump and President Xi Jinping in May. The Asian nation has booked a number of cargoes (last) week alone, including 238,000 tons reported by the US Department of Agriculture on Friday.”
“That puts this year’s purchases roughly a quarter of the way toward meeting what the White House has said is a commitment to purchase at least 25 million tons of soybeans annually through 2028. The administration has also said China has agreed to buy at least $17 billion of additional US agricultural products annually,” Ailworth reported. “Traders continue to watch for any additional policy signals from Washington and Beijing before an expected meeting between Trump and Xi in September.”
Reuters’ Naveen Thukral, Ella Cao and Karl Plume reported that the recent purchases were made as “buyers were taking advantage of lower prices in a flurry of purchases ahead of President Xi Jinping’s expected U.S. visit next month.”
“‘These deals were mainly done by Sinograin and the main reason is a drop in prices last week. There are plans for President Xi to visit the U.S. in September so China is also trying to buy U.S. beans under its commitment made to Washington,’ an Asia-based trader at an international trading company told Reuters on Monday,” Thukral, Cao and Plume reported. “The companies paid a premium of $3.03 per bushel over the November Chicago Board of Trade contract for shipment from the U.S. Gulf and a $3 premium for Pacific Northwest shipments, said one source. The most active soybean contract fell 5.2% last week.”
Chinese Diplomat Encourages US and China to ‘Work Together’ to Better Trade
Ailworth also reported that “US President Donald Trump’s trade war with China created a ‘tortuous experience’ that disrupted the flow of soybeans between the world’s two largest economies, a Chinese diplomat said Friday.”
Source : illinois.edu